Banks handling pre-released American Depositary Receipts, which U.S. residents use to invest in foreign companies, are taking a risk if they rely on agreements, annual certifications or the word of brokers to ensure that they’re complying with the law.

Case in point: JPMorgan Chase Bank’s more than $135 million settlement reached Dec. 26 with the U.S. Securities and Exchange Commission. The deal resolves charges alleging that the New York-based bank made about $71 million in revenue through abusive ADR practices in thousands of transactions that occurred from November 2011 through early 2015.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]